Fraport Q3 core profit beats estimates as passenger numbers rebound

Frankfurt Airport operator Fraport on Tuesday reported a 14% rise in third-quarter core profit, but confusion around 2024 tariff guidance weighed on shares in afternoon trade. The group said its earnings before interest, taxation, depreciation and amortisation rose to E478.1m in the quarter from 420.3m a year earlier, beating analysts’ average forecast of 449.9m euros, according to LSEG data. Fraport’s share price was down 3.3% at 1508 GMT after rising as much as 4.8% in morning trade. “There appeared to be some confusion surrounding tariff guidance for 2024,” Redburn Atlantic analyst Ed Vyvyan wrote to Reuters in an email following an analyst call with the company. “Previously, the company had spoken about a 9.5% tariff increase for 2024, however, on the Q3 call, management explained that this was actually a gross figure,” Vyvyan said, noting the expected net growth figure after anticipated airline incentives will be “more like 5-7%”. “Ultimately, it hinges on how many passengers come through the airport,” he added. CE Stefan Schulte said the group’s Q3 EBITDA, revenue and net profit reached “new all-time highs” which would help to “gradually reduce the debt incurred during the pandemic”. Quarterly results were boosted by recovering passenger numbers across Fraport’s global network of airports, with traffic at its homebase Frankfurt growing by almost a quarter in the first nine months of the year. Q3 traffic at the hub was at 86% of 2019 levels. “FRA is thus overcoming the crisis faster than other major German airports,” Schulte said.<br/>